According to a report by the South China Morning Post (SCMP), exports of Chinese hybrid cars to the European Union (EU) surged over 200% in September, ahead of the implementation of an import quota system. This spike is attributed to local dealers and manufacturers exporting large quantities of vehicles before the regulations take effect.
Data from the General Administration of Customs of China shows that approximately 100,000 hybrid cars were exported to the EU in September, marking a 204.2% increase compared to the same month last year.
This figure also represents an 18.9% rise from August, significantly outpacing the overall increase in China's passenger car exports to the EU, which rose by 142.7% during the same period.
From January to September this year, cumulative exports of Chinese hybrid cars to the EU reached about 670,000 units, nearly double last year's total of 356,000.
Chinese automakers have shifted their focus to hybrid vehicles as the EU plans to impose tariffs of up to 35.3% on Chinese electric vehicles (EVs) starting in 2024, as these vehicles face fewer regulatory barriers.
However, during recent high-level negotiations aimed at easing trade tensions, both sides agreed to limit the import of Chinese hybrid cars. Starting December 1, the import volume will be capped at 350,000 units for the first year, with a 6% annual increase for the second to fourth years.
Experts predict that the trend of increased exports will continue in October and November, ahead of the regulatory changes.
Lynn Song, chief economist at ING Bank, noted that local dealers may have aimed to purchase as much as possible before the export quotas take effect, suggesting that imports will remain high in the two months leading up to the regulations.
Shu Tianchen, senior economist at the Economist Intelligence Unit (EIU), referenced past instances of Brazil's electric vehicle tariff increases and Thailand's subsidy reforms, stating that Chinese automakers have historically ramped up exports just before new regulations are introduced. However, he added that since both sides have already agreed on the import cap, this preemptive export surge is unlikely to have a direct negative impact on trade relations.
China's strong export performance has contributed to a 4.5% economic growth rate in the third quarter, helping to offset domestic sluggishness. Experts believe that the surge in hybrid car exports, along with robust trade in technology-related goods, could lead to a record trade surplus for China this year.
* This article has been translated by AI.
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